Follow by Email
Facebook
Twitter
Telegram

How Ethereum’s ‘Merge’ Will Affect Crypto Tokens

Crypto currency Ethereum

The Ethereum Merge is just around the corner, with only a few days left for the migration. While you can smell the excitement in the air, some show worry or concern about its potential effect on their existing crypto tokens.

We’ve gathered some basic information about the upcoming Merge and answered some important questions along the way.

What’s the Merge All About?

The Merge aims to combine its Mainnet with the Beacon chain, the network’s Proof of Stake or PoS layer. This shifts ETH from a Proof of Work method to a Proof of Stake format.

In its current state, ETH is powered by the PoW model, where miners secure the network. Miners constantly run their hardware to ‘mine’ ETH from the blockchain.

The PoS model, on the other hand, revolves around ‘validators’ that stake ETH to empower ETH. They use existing ETH to secure the network, thus making it sustainable.

Ethereum Merge logo

Benefits of the Merge

There are three proposed benefits once ETH successfully handles the Merge.

1. Eco-Friendly

The PoW model used powerful hardware to produce results, consuming large volumes of electricity. Many sectors frown upon this, becoming one major detractor for ETH and crypto.

Once it transitions to a PoS layer, ETH will require less electricity to function, making it more appealing to current and future investors.

2. Tighter Security

The Merge also allows for easier acquisition of ETH easier, making each transaction more transparent. Since validation becomes the main form of generation, it’s less prone to attacks.

3. Better Scalability

As part of ETH’s roadmap, the Merge plays a crucial role in making the network more scalable and adapting to future tech faster.

Should I Prepare for The Merge?

To answer this common question, Nothing. Yes, that’s right. You don’t have to do anything to prepare or handle the Merge.

Despite the transition from PoW to PoS, nothing will change with the current ETH on your wallets. ETH history remains intact, meaning it will still detect your coins.

Ethereum (ETH) and cryptocurrency investing concept - Physical metal ethereum coins with global trading exchange market price chart in the background.

How Will My ETHi Tokens Be Affected by the Merge?

Your ETHi tokens will not be affected by this Merge. Despite ETHi running on the ERC-20 based on ETH, no visible or digital changes will happen. Your tokens are guaranteed safe and will keep their current value.

Brighter Things Ahead for ETH

The upcoming Ethereum Merge signifies a milestone for ETH and the entire crypto space in general. This not only eliminates a central argument against crypto but also solidifies its position as the currency of the future.

Related articles

4 Factors that Affect Crypto Prices (and How to Take Advantage) 

Every economy, from your local farmer’s market to the crypto industry, relies on the simple principle of supply and demand for its market value. Crypto tokens are typically made in a limited quantity, and crypto prices is the result of those who want it versus those who are willing to sell.  Though apart from this […]

Learn More

The Rise of Bitcoin Amidst Controversies

Bitcoin, the leading cryptocurrency in the market, has made another milestone as it surpasses its $20,000 value this January. Bitcoin’s value has risen to 0.63% within a day. The unexpected rise of Bitcoin has caught much attention since just the last year; its value dropped more than half. Conquering a Crisis Experts speculate that the […]

Learn More

SVB Downfall: The Silver Lining for Crypto

Silicon Valley Bank’s collapse affected many business sectors, from stockholders to investors with extensive bank deposits. Though the government will aid in mitigating the situation, only a fraction of the loss can be received by SVB.  This crisis became a big blow to the banking industry because of the opacity of their operation. On the […]

Learn More